International Finance Corporation has announced the completion of its divestment from Ecobank Transnational Incorporated.
Ecobank had earlier notified the NSE and its stakeholders that the IFC and the funds managed by the IFC Asset Management Company were in discussions to dispose of their shareholding to Arise BV.
In a statement made available to the NSE on Wednesday, Ecobank confirmed that the transaction had been completed and that as a consequence, Arise had become a shareholder of the bank with a 14.1 per cent stake.
It said J.P Morgan Securities Plc acted as a sole placement agent and sole financial advisor to the IFC and funds managed by the AMC in the transaction.
The Senior Advisor, IFC, Paolo Martelli, said, “As part of its ordinary asset portfolio rotation, the IFC has divested its shareholdings in Ecobank to Arise BV, a highly-reputable investment house with a strong developmental mandate for Africa.
“The IFC invested in Ecobank for more than 10 years and our investment has helped to increase access to credit for entrepreneurs and the Small and Medium Enterprises in sub-Saharan African countries (including International Development Association countries) in which the bank operates, achieving the development impact we sought when we made the investment.”
Martelli said the IFC maintained its strong commitment to the development of the sub-Saharan African region and would continue to invest in other projects in countries.
The Chief Executive Officer, Arise, Deepak Malik, said in line with the core business mandate of investing in Africa’s local prosperity, the company was excited to acquire the 14.1 per cent shareholding in Ecobank.
He said the company aimed to collaborate with local financial service providers in sub-Saharan Africa to boost economic growth through strengthening the local banking sector.
Malik added that the transaction with Ecobank would see Arise collaborate with the bank to advance financial inclusion on the continent.
The Chief Executive Officer, Ecobank, Ade Adeyemi, said Ecobank was pleased to welcome Arise as a shareholder.
He said he believed that there would be a strong synergy in the companies’ core objectives, especially in ensuring and enshrining financial inclusion and the potential for the development of the continent.